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After Donald Trump ordered the firing of a federal government official in charge of labor statistics, experts and opposition politicians have expressed alarm that the “credibility” of US economic data was at risk.

The US president claimed without evidence that Erika McEntarfer, the commissioner of labor statistics, had “rigged” job numbers “in order to make the Republicans, and ME, look bad”, after data showed jobs growth stalled this summer, prompting accusations that the president was “firing the messenger”.

Bill Beach, a former Heritage Foundation economist who was picked by Trump in 2018 to oversee labor statistics, denounced what he called the “totally groundless firing”.

“Politicizing economic statistics is a self-defeating act,” said Michael Madowitz, the principal economist at the Roosevelt Institute’s Roosevelt Forward, who added that “credibility is far easier to lose than rebuild, and the credibility of America’s economic data is the foundation on which we’ve built the strongest economy in the world”.

Senate Democrat Ron Wyden said “this is the act of somebody who is soft, weak and afraid to own up to the reality of the damage his chaos is inflicting on our economy”.

The move came as markets around the world were roiled by Trump’s latest tariff announcement, which left more than 60 countries scrambling to secure trade deals.

Here are the key US politics stories of the day:

Catching up? Here’s what happened 31 July 2025.

LAHORE: One of Pak­istan’s leading business conglomerates, Nishat Group, has partnered with Chery International — China’s largest automobile exporter — to launch its global brands, Omoda and Jaecoo, in the local market. The high-profile unveiling event was held on Friday.

The group announced plans to establish a car manufacturing facility near Faisalabad, with local assembly of electric vehicles (EVs) expected to commence in November. An investment of $100 million will be made through its subsidiary, Nexgen Auto, to support EV manufacturing and marketing operations in Pakistan.

In a significant industry first, five car models were unveiled simultaneously — more than typically seen at automotive laun­ches. The line-up included two long-range battery electric vehicles (E5 and J6), two plug-in hybrids (J7 and C7), and a hybrid vehicle (J5). The event was attended by a broad spectrum of participants, including political figures, environmental advocates, automotive influencers, and car enthusiasts.

Speaking at the event, Nishat Group Chairman Mian Mohammad Mansha welcomed the government’s focus on electric mobility, calling it a timely move to address climate and economic challenges. He said the group had chosen to partner with Chery International due to its commitment to environmental sustainability.

$100m manufacturing plant near Faisalabad to begin assembly in Nov

“The introduction of electric vehicles will help combat pollution and significantly reduce the country’s oil import bill,” he said. He added that his group’s existing automotive venture, Hyundai, has already sold over 50,000 units. Mr Mansha also announced plans to offer bank financing for electric cars through MCB Bank, another entity under the Nishat umbrella.

Mr Qi Joe, President of Chery International South Asia, expressed confidence in the partnership, stating that the collaboration would help position Omoda and Jaecoo among Pakistan’s top car brands.

In a statement, the company said the launch highlighted Nishat Group’s commitment to innovation and excellence. “The unveiling of a future-ready line-up, tailored to the evolving needs of Pakistani consumers, reflects Nishat Group’s strategic vision for the country’s automotive industry,” it noted.

The event marks a milestone for Nexgen Auto in its goal to redefine mobility in Pakistan by introducing cutting-edge technology, sustainable design, and intelligent performance. With the entry of Omoda and Jaecoo, the company aims to bring global innovation and a modern driving experience to local roads, setting a new industry benchmark.

Published in Dawn, Aug 2nd, 2025

KARACHI: The government raised Rs639 billion through the auction of Pakistan Investment Bonds (PIBs) on Friday — more than double the Rs300bn target — amid strong demand from banks for long-term papers, supported by the State Bank’s decision to keep interest rates unchanged.

Despite a real interest rate margin of around 7pc — between the 11pc policy rate and current inflation — banks continued to chase long-tenor bonds, reflecting expectations that rates may stay higher for longer.

The sizeable spread remains a point of contention for traders and industrialists, who are urging a substantial rate cut to ease borrowing costs.

The cut-off yields for 2-, 3-, and 5-year PIBs rose by 5 to 24 basis points, signalling that the interest rate may remain unchanged for an extended period despite fluctuations in inflation. Conversely, the yield for 15-year bonds was reduced by 5bps.

In this auction, the hig­hest amount — Rs300bn — was raised through 15-year PIBs at a cut-off yield of 12.45pc. Notably, all bids for this tenor were rejected in the previous auction held on July 14.

Govt borrows Rs639bn against PIBs auction target of Rs300bn

The second-highest amount, Rs221bn, was secured through 10-year bonds at a yield of 12.15pc, slightly down from 12.20pc in the prior auction. The government also raised Rs28bn, Rs47bn, and Rs43bn from 2-, 3-, and 5-year bonds at yields of 11.09pc, 11.14pc, and 11.44pc, respectively. The largest increase — 24 basis points — was recorded in the two-year PIBs.

The robust participation reflected the high liquidity available in the banking system, with total bids amounting to Rs2.034tr.

While higher interest rates benefit banks by allowing them to earn more from risk-free government securities, they pose a burden on both the private sector and the government due to increased borrowing costs.

A financial expert noted that a 1pc cut in the interest rate could save the government Rs1tr in debt servicing. “By reducing the policy rate from 22pc to 11pc in FY25, the government has already saved trillions of rupees in interest payments,” he said. The government’s preference for long-term borrowing through PIBs indicates a strategic shift to avoid frequent refinancing and reduce short-term debt servicing pressure.

Published in Dawn, Aug 2nd, 2025

LONDON: The family of elderly British couple Peter and Barbie Reynolds, detained for six months without charge in Afghanistan, fears the worst as their health declines.

“I don’t know if they’re still alive,” said their son, Jonathan Reynolds, who has not spoken to his parents since their last phone call on June 15.

“How would I know if they were no longer alive? Who’s going to call me? The Taliban never called me. Who’s going to call? I don’t know,” asked Reynolds, one of the couple’s four children.

Peter Reynolds, 80, and his 76-year-old wife were arrested in February along with Chinese-American friend, Faye Hall, who was released in March, and an Afghan translator.

The couple were married in Kabul in 1970, and have spent almost two decades living in Afghanistan running educational programmes after moving there. They also became official Afghan citizens.

Taliban officials have refused to detail why the couple was arrested in February as they were returning to their home in central Bamiyan province.

“They were told by the judge that they were not guilty of any crimes,” said their son.

“So many times we’ve been told two to three days and then you’ll be released … But it’s six months on Saturday,” he added.

Published in Dawn, Aug 2nd, 2025

WASHINGTON: President Donald Trump said on Friday he had ordered the firing of a key economic official, accusing her of manipulating employment data for political reasons after a report showed cracks emerging in the US jobs market.

Job growth missed expectations last month, Labour Department data showed, and revisions to hiring figures in recent months brought them to the weakest levels since the Covid-19 pandemic.

Trump lashed out at the department’s Commissioner of Labour Statistics, Erika McEntarfer, after the report, charging that she had “faked” jobs data to boost Democrats’ chances of victory in the presidential election last year.

“McEntarfer said there were only 73,000 Jobs added (a shock!) but, more importantly, that a major mistake was made by them, 258,000 jobs downward, in the prior two months,” Trump wrote in a Truth Social post, referring to the latest data for July.

“Similar things happened in the first part of the year, always to the negative,” he added.

But he insisted that the world’s biggest economy was “booming” under his leadership.

The United States added 73,000 jobs last month, while the unemployment rate rose to 4.2 per cent from 4.1pc, said the Department of Labour on Friday.

Hiring numbers for May were revised down from 144,000 to 19,000. The figure for June was shifted from 147,000 to 14,000.

This was notably lower than job creation levels in recent years. During the pandemic, the economy lost jobs.

Published in Dawn, Aug 2nd, 2025